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HBOS caught cross-selling

Ramesh Sharma

June 1, 2004

Rob Downham, director of Simplicity Financial Services, contacted Mortgage Introducer in frustration after several cases had ‘proved to him’ HBOS was cross-selling.

He explained: “About a year ago I arranged my own mortgage with the Halifax. Within approximately one day of submitting the application online I received a call from the Halifax saying that my financial adviser had asked it to call to discuss my buildings and contents needs. I informed the lady I was in fact the adviser and that I had not requested it to call.

“ My colleague who recently arranged his mortgage with Bank of Scotland also received three calls to check he had adequate buildings insurance arranged.”

He went on to add: “This morning however it proved beyond doubt that it is actively selling to my clients. I received a completed application for an ASU policy, simply asking me to sign and return the application. Just checking I had ASU cover was it?

“ It has also done this to a client of mine several months ago; a £90 per month ASU policy was about to be put in force even though one client was self-employed and could not prove income and the other had MS.”

Downham said if HBOS insisted on cross-selling it should stand up and tell the truth, and even pay the broker some of the commission.

Jon Craven, head of HBOS GI Mortgage Intermediaries, said: “Unfortunately without being given the necessary information we have not had the opportunity to look into this case.

“ It is our responsibility as a diligent lender to contact customers to ensure that insurance is in place or is going to be arranged by themselves or the broker.”


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